The following is a list of activities in an economy: (i) Allocation (ii) Production (iii) Distribution…
Musgrave's three fiscal branches are allocation, distribution and stabilization. Production can be a means of public policy, but is not a separate fourth branch in this…
Choose your answer
The following is a list of activities in an economy:
- (i) Allocation
- (ii) Production
- (iii) Distribution
- (iv) Stabilization
Which of these falls in the domain of government according to Musgrave?
Answer and explanation
Correct answer C
Musgrave's three fiscal branches are allocation, distribution and stabilization. Production can be a means of public policy, but is not a separate fourth branch in this classification.
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UGC NET Economics